America’s Biggest Banks Consider Teaming Up to Challenge $245B Stablecoin Market: WSJ

The main US banks are reportedly exploring a joint stablecoin venture to directly compete with the growing dominance of the Crypto Industry in digital payments.

Discussions are underway between JPMORGAN Chase, Bank of America, Citigroup, Wells Fargo and others through their pay companies, including early warning services and a clinic house, according to a Wall Street Journal report.

These discussions depend on the upcoming Stabibelo’s legislation This could help form a box for banks and non-brake to publish a stabible.

Stabilcoini Are digital currencies usually related to the US dollar or other Fiat currency and have been increasingly supporting the cash registers in recent years.

While some see them as “destabilization” in economic and fiscal policies, “individuals and companies see a huge benefit,” said Pedro Lapenta, head of research at Hashdex Asset Management, he said Decipher.

And time could not be more appropriate.

This week, Senate moved forward with an ingenious actA double -sided proposal of the law aims to regulate stable payments by installing the standards of federal reserves, transparency and monitoring of the issuer.

If the law becomes a law, Stablecoins could “accelerate the adoption of digital assets” in general and strengthen “the investment case for bitcoin and other cryptocurrencies,” Lapenta said.

But it’s not really about an investor. Banks see a variable regulatory landscape as a possible green light to start exploration of ways to dispute the domination of Circle and Tether’s task over $ 245 billion Stablecoin market.

Circle, a publisher regulated in the United States, initiated his USDC Stablecoin in 2018, along with Coinbase through Central Consortium, in an attempt to offer an alternative to Tether’s market leading the market, which debuted in 2014 on the OMNA headquarters based in Bitcoin.

Tether retained a dominant position in the Stablecoin sector, despite the years of control over the transparency of his reserves.

Since 2022, Stablecoin publisher has published three -month certificates in an attempt to point out problems. Now makes more than 60% of the market.

The circle, on the other hand, sought to distinguish USDC by positioning it as a more compatible product, citing a third party certificates and a closer regulatory engagement in the US

But also had its set of problems, including temporary dependent Since USDC 2023 after the collapse of the Silicon Valley bank, he stopped plans for the public through a SPAC job 2022 and declining the market share.

The entry of the main global financial companies can soon test the remains of power and the ownership and the chips in their dominance.

For now, the debate between the banks remains in its infancy and could change at any time, according to the report.

Tether and Circle did not immediately respond to the comment requests.

Edited Sebastian Sinclair